Cathay close to Dragonair takeover

According to a number of reports Cathay Pacific is close to announcing a takeover of China-focused rival Dragonair in a deal reported to be worth US$1.3 billion.The much-anticipated buyout would give Cathay profitable routes to the fast-growing mainland China market and bring serious competition for local airlines such as China Southern and China Eastern.

It is thought a deal is likely to be announced later this week.